David Tepper told CNBC’s Joe Kernen that Amazon’s stock price looks attractive after the recent mega-cap tech pullback.
Amazon is currently trading at $2,999, narrowly above last week’s five and a quarter month lows.
The Appaloosa Management founder said Amazon’s stock now looks inexpensive, according to Kernen.
The e-commerce giant has fallen nearly 10% in the last month as investors rotate out of mega-cap technology stocks and into names that benefit from rising yields and a recovering economy.
Tepper said he still likes Amazon and other “bellwether stocks.” He added that Amazon has permanently changed aspects of consumer behavior. For example, people are less inclined to buy products like t-shirts in retail stores if they can just shop on Amazon.
The hedge fund manager also said it’s difficult to be bearish on stocks right now because rates have now stabilized and the $1.9 trillion pandemic relief package that was just approved by the Senate will be bullish for the stock market.
Appaloosa Management already has an office in Miami Beach, Florida, and Tepper owns a nearby condo, which he bought in 2017 for $10.7 million, according to the Journal. Still, his latest home purchase signals a commitment to South Florida at a time when Wall Street firms and their executives are heading south, lured by a low tax burden.
Wall Street luminaries like Carl Icahn and Charles Schwab have also relocated from New York to Florida, and in January, hedge-fund billionaire Dan Loeb purchased a mansion in Miami Beach for $20 million. The seven-bedroom waterfront home features amenities such as a home theater, a private boat dock, and separate guest quarters.
The migration is being echoed in the tech industry as well. Tech billionaire Peter Thiel recently purchased an $18 million Miami compound on a manmade island and Shutterstock billionaire Jon Oringer paid $42 million for a sprawling Miami Beach mansion in October. Prolific investor Keith Rabois has also been outspoken about moving to Miami, citing low taxes as well as ideological diversity as his reasons for moving.
The influx of wealthy executives is sending South Florida home prices soaring: According to data from real estate firm Douglas Elliman, the median home sale price in Palm Beach shot up to $4.9 million by the end of 2020, an increase of 29% from the year earlier.